Total utility is maximum when marginal utility starts declining. - Vidyadip

Question

Total utility is maximum when marginal utility starts declining.

✓

Answer

False.
When marginal utility starts declining, total utility increases at a diminishing rate. Total utility is maximum when marginal utility is zero.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "True/False" from MICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS→MICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

If $2\%$ increase in $P_x$_ is accompanied with constant expenditure on the commodity, elasticity of demand $= 1$

Consumer equilibrium can be determined only if the law of diminishing marginal utility holds good.

Decrease in demand refers to contraction of demand.

Giving reasons, state whether the following statements are true or false.
If income of the buyer decreases, demand for inferior goods decreases.

MR tends to fall even when AR is constant.

Negative MU denotes more satisfaction. (True/ False)

AP can rise even when MP is falling.

For a family of four, demand schedule for rice should be the same for each member.

Supply increases in response to increase in price of the concerned commodity.

Giving reasons, state whether the following statements are true or false:
An increase in supply results in a fall both in equilibrium quantity and equilibrium price.